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DEFENSE LOGISTICS AGENCY AMERICA’S COMBAT LOGISTICS SUPPORT AGENCY
WARFIGHTER SUPPORT ENHANCEMENT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT
Submitting Alternate Offer &
Source Approval Request
Packages
John Blaine
Alternate Offer Monitor
Competition Advocate Office
Eric Wilde Engineering Support Team
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Agenda
• What is an Alternate Offer & SAR
• AO/SAR Technical Data Packages
• “Automated” Solicitations
• New Competition Enhancements
• Open Discussion / Questions & Answers
As of: Data Source: POC:
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Alternate Offer / SAR
What is an “Alternate Offer”?
An Alternate Offer requires a technical data package with approved
drawings, price proposal, etc. to support the quote submitted by the
Vendor on a NSN that is currently being solicited.
The Alternate Offer packages contain data & documents submitted
for the purpose of putting your product’s capabilities forward, in an
effort to enhance your company & its product status by becoming an
“Approved Source” for future Solicitations.
As of: Data Source: POC:
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An Alternate Offer is made during a normal DIBBS bid
session. If you & your product are not listed in the
Solicitation - you are an ALTERNATE OFFER and must
quote as an “Alternate Offer” / “Bid with Exception”. (Bidding an Exact Item with the intention of delivering something
else could be misunderstood and considered to be actually ‘Intent to
Defraud’ the Government.)
Depending upon the type of procurement, you may be
able to quote for the instant procurement - except in the
case of an “Automated Solicitation”.
You can submit an Unsolicited Offer technical data
package to the Alternate Offer Monitor – BPP at
anytime.
Alternate Offer / SAR
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AO/SAR Guidance:
DLAD 52.217.9002 “Conditions for Evaluations and Acceptance of
Offers for Part Number Items”
Guidance for submitting to DLA Land and Maritime, Alternate Offer &
Source Approval Request - is in your support packets.
Also available at: http://www.landandmaritime.dla.mil under “Selling
to DLA Land and Maritime” / “Business Opportunities”.
Note – AO/SAR Technical Data Packages will not be evaluated for
items, designated “Fully Competitive”. If the Solicitation has “Full
and Open Competition Applies” with a complete Technical Bid Set
of Drawings & Technical Specifications available from the
Threshold”? • The AO/SAR “Cost Savings Threshold” is the total dollars
which the Government will save, if your product is approved – calculated by comparing the net differential (Current Approved Source Unit Price less the Proposed Product Unit Price) multiplied by the DLA Historical Annual Demand for that NSN.
• Cost Savings Thresholds for AO/SAR processing:
$200 if local DLA Land & Maritime only (Non-Critical NSNs)
$1,500 min. per Engineering Support Activity (ESA)
$1,700-7,500 minimum amount of cost savings, if the package must be forwarded to an ESA (s) for further evaluation.
Alternate Offer / SAR
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Provide your CAGE code, the NSN & your Proposed
Unit Price, Quantity Price Breaks, your Technical
Data - as well as the Approved Source (OEM)
Technical Data* in your package.
* Option - If you can not get the OEM’s technical data & drawings
and the Government has the data available for release, during an
open Solicitation you may request DLA Land & Maritime to assist
you to secure data the Government has that is available &
releasable.
Please, do not send product samples with your
AO/SAR Package. (If needed, they will be requested
in writing later.)
Alternate Offer / SAR
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• If the Government does not have release-able technical
data, you may request permission to “reverse engineer”
the Approved Product from DLA Land & Maritime
RPPOB office. (Prior to sending your request, double-check with
DAG 17.7501-6 – Retention of Newly Approved Alternate Sources
• Applies when an Alternate Offer source is formally Approved on an NSN, that was previously purchased noncompetitively.
• Creates a favorable environment for multiple awards on one-time buys during the “Foundational Period”.
• Authority: FAR 6.101; DLAD 17.9001(a) (5) and 17.9002(d).
• Applies to DLA Land and Maritime newly approved source product submitted through Alternate Offer or SAR process.
Newly Approved Alternate Sources
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• To enhance Competition by encouraging new sources.
• To help new sources with limited funding to hang in there instead of dropping out of the Government market, due to incumbent OEM entry-deterring actions:
Lowering prices
Predatory pricing
Capacity expansion
• To encourage future competitive sources and facilitate supply availability at competitive prices.
Purpose
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• Multiple awards shall be considered when:
The new source may not be the overall best value, but their offered price is equal to or lower than the last noncompetitive price paid by the Government
Their price determined to be Fair and Reasonable
Their delivery meets the Government’s requirements
The benefit of issuing multiple awards outweigh anticipated increased prices that may result from the award of more than one contract.
Multiple Award Preference
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• Twelve months after the alternate source is approved or six months after they receive their first award, whichever is later:
If first article approval is required, the period begins to run when the first article sample is delivered and completed testing with an written approval
If the item is on LTC, the period begins to run when the item is deleted from the LTC for competitive action
Foundation Period Defined
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• If the new source requires FAT approval, all the required FAT clauses and DLAD 52.217-9018, Supply Assurance Through Multisource Contracting are included.
• If the new source does not require FAT, instructions on the continuation sheet (RFPs and RFQs) are added:
The Government reserves the right to make multiple awards if, after considering the additional administrative costs, it is in the Government’s best interest to do so.
If awards will be made to more than one source, the offer that represents the best value to the Government shall receive not less than 60% of the total requirement.
Unless an offeror otherwise qualifies its offer, unit prices submitted for the total requirement will apply to any partial awards.
• Price break ranges are to be actively solicited.
Solicitation
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Questions & Answers
Alternate Offer / SAR
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DEFENSE LOGISTICS AGENCY AMERICA’S COMBAT LOGISTICS SUPPORT AGENCY
WARFIGHTER SUPPORT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT